Money News: Twenty Best Tech Funds That Hold FANG
- Details
- Category: Business/Financial News
- Published on Sunday, 20 November 2016 07:52
- Written by Christina Lavingia
Given the innovation and success of many tech giants, it's understandable why investing in the tech sector is so appealing. Growth for the largest companies such as Facebook, Amazon, Netflix and Google or FANG investing has been impressive, beating out all the major market indices.
But stock performance for tech companies can be volatile. This is one reason why the investment in Facebook, Amazon, Netflix and Google stocks, is getting attention.
Although the stock prices have fluctuated more dramatically for some of these companies than others, they all have experienced significant growth over time. In fact, a recent Goldman Sachs research report found that underrepresentation of hot FANG stocks is a potential reason reason why the S&P 500 outperformed 73 percent of large-cap mutual funds in 2015.
A recent Forbes article highlights why some investors find investments in FANG stocks attractive. Investors can focus their sights on mutual funds with a high portfolio weighting of FANG, while still receiving the benefits of portfolio diversification and professional management of a mutual fund.
"Companies like Facebook, Amazon, Netflix, Google -- and Chipotle, Apple, EMC, Ultimate Software, Tesla and Qualcomm just to name a few others -- are growing," said Adam Hartung of Forbes. "They are firmly tied to technologies and products that are meeting emerging needs, and they know their customers. They are doing things that increase long-term value."
Apart from tech mutual funds, interested investors can also focus their sights on FANG-specific funds when selecting a mutual fund.
Credio identified mutual funds with over 15 percent weighting in Facebook, Amazon, Netflix or Google stocks. The top 20 funds were then ranked based on five-year returns. We then narrowed the list to only include funds that:
- Are open to new investors
- Have five-year returns greater than 10 percent
- Are open-end funds
- Have lower-than-average expense ratios
The average expense ratio for all mutual funds that hold FANG stocks is 1.17 percent, and all 20 of these funds have expense ratios lower than that average.
#20. BUFTX - Buffalo Discovery
Five-Year Annualized Return: 17.53%
Expense Ratio: 1.02%
Yield (TTM): 0.00%
Net Assets: $1.14 billion
Investment Style: Mid-Cap Growth
#19. Homestead Growth HNASX
Five-Year Annualized Return: 17.13%
Expense Ratio: 0.95%
Yield (TTM): 0.00%
Net Assets: $114 million
Investment Style: Large Growth
#18. Elfun Trusts ELFNX
Five-Year Annualized Return: 17.30%
Expense Ratio: 0.19%
Yield (TTM): 1.30%
Net Assets: $2.38 billion
Investment Style: Large Growth
#17. Fidelity Blue Chip Growth FBGRX
Five-Year Annualized Return: 17.32%
Expense Ratio: 0.82%
Yield (TTM): 0.13%
Net Assets: $19.3 billion
Investment Style: Large Growth
#16. T. Rowe Price Growth Stock PRGFX
Five-Year Annualized Return: 17.36%
Expense Ratio: 0.67%
Yield (TTM): 0.00%
Net Assets: $45 billion
Investment Style: Large Growth
#15. Vanguard US Growth VWUSX
Five-Year Annualized Return: 17.24%
Expense Ratio: 0.47%
Yield (TTM): 0.44%
Net Assets: $6.86 billion
Investment Style: Large Growth
#14. Fidelity Select Consumer Discret Portfolio FSCPX
Five-Year Annualized Return: 17.94%
Expense Ratio: 0.77%
Yield (TTM): 0.50%
Net Assets: $1.06 billion
Investment Style: Consumer Cyclical
#13. Loomis Sayles Growth LGRNX
Five-Year Annualized Return: 18.68%
Expense Ratio: 0.55%
Yield (TTM): 0.55%
Net Assets: $4.16 billion
Investment Style: Large Growth
#12. GE Institutional Premier Growth Equity GEIPX
Five-Year Annualized Return: 17.69%
Expense Ratio: 0.38%
Yield (TTM): 0.91%
Net Assets: $335 million
Investment Style: Large Growth
#11. VALIC Company I Blue Chip Growth VCBCX
Five-Year Annualized Return: 17.62%
Expense Ratio: 0.84%
Yield (TTM): 0.00%
Net Assets: $616 million
Investment Style: Large Growth
#10. T. Rowe Price Media and Telecommunications PRMTX
Five-Year Annualized Return: 19.05%
Expense Ratio: 0.79%
Yield (TTM): 0.17%
Net Assets: $3.83 billion
Investment Style: Communications
#9. Fidelity Nasdaq Composite Index FNCMX
Five-Year Annualized Return: 18.38%
Expense Ratio: 0.29%
Yield (TTM): 0.78%
Net Assets: $2.52 billion
Investment Style: Large Growth
#8. T. Rowe Price Blue Chip Growth TRBCX
Five-Year Annualized Return: 17.86%
Expense Ratio: 0.71%
Yield (TTM): 0.00%
Net Assets: $32.5 billion
Investment Style: Large Growth
#7. Fidelity OTC Portfolio FOCPX
Five-Year Annualized Return: 18.53%
Expense Ratio: 0.91%
Yield (TTM): 0.00%
Net Assets: $13.4 billion
Investment Style: Large Growth
#6. USAA NASDAQ-100 Index USNQX
Five-Year Annualized Return: 18.70%
Expense Ratio: 0.57%
Yield (TTM): 0.56%
Net Assets: $1.02 billion
Investment Style: Large Growth
#5. VALIC Company I NASDAQ-100 Index VCNIX
Five-Year Annualized Return: 18.81%
Expense Ratio: 0.53%
Yield (TTM): 0.63%
Net Assets: $331 million
Investment Style: Large Growth
#4. Fidelity Select Multimedia Portfolio FBMPX
Five-Year Annualized Return: 19.29%
Expense Ratio: 0.81%
Yield (TTM): 0.35%
Net Assets: $540 million
Investment Style: Consumer Cyclical
#3. Fidelity Select Software and IT Svcs Portfolio FSCSX
Five-Year Annualized Return: 21.37%
Expense Ratio: 0.77%
Yield (TTM): 0.07%
Net Assets: $3.82 billion
Investment Style: Technology
#2. Fidelity Select Retailing Portfolio FSRPX
Five-Year Annualized Return: 21.12%
Expense Ratio: 0.81%
Yield (TTM): 0.08%
Net Assets: $2.07 billion
Investment Style: Consumer Cyclical
#1. T. Rowe Price Global Technology PRGTX
Five-Year Annualized Return: 24.80%
Expense Ratio: 0.91%
Yield (TTM): 0.00%
Net Assets: $3.11 billion
Investment Style: Technology
